Skip to main content

Advertisement

Log in

Estimating the demand for informal public transport: evidence from Antananarivo, Madagascar

  • Original Research
  • Published:
Public Transport Aims and scope Submit manuscript

Abstract

Informal public transport has been growing rapidly in many developing countries. Because urban infrastructure development tends to lag behind rapid population growth, informal public transport often meets the growing gap between demand and supply in urban mobility. Despite the rich literature primarily focused on formal transport modes, the informal transport sector is relatively unknown. The paper analyzes the demand behavior in the “informal” minibus sector in Antananarivo, Madagascar, taking advantage of a recent user survey of thousands of people. It is found that the demand for informal public transport is generally inelastic. Essentially, people have no other choice but to use this kind of public transport. While the time elasticity is estimated at − 0.02 to − 0.05, the price elasticity is − 0.05 to − 0.06 for short-distance travelers, who may have alternative choices, such as motorcycle taxi or walking. Unlike formal public transportation, the demand also increases with income. Regardless of the income level, everyone uses minibuses. The estimated demand functions indicate that people prefer safety and more flexibility in transit. The paper shows that combining these improvements and fare adjustments, the informal transport sector can contribute to increasing people’s mobility and reducing traffic congestion in the city.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price includes VAT (Finland)

Instant access to the full article PDF.

Fig. 1
Fig. 2

Source: ZIPJET (2017)

Fig. 3

Source: World Development Indicators

Fig. 4

Source: World Development Indicators

Fig. 5

Source: World Bank (2019)

Fig. 6

Source: World Bank (2019)

Fig. 7

Source: World Bank (2016)

Fig. 8
Fig. 9
Fig. 10

Source: World Bank (2016)

Fig. 11
Fig. 12
Fig. 13
Fig. 14
Fig. 15
Fig. 16
Fig. 17
Fig. 18
Fig. 19
Fig. 20

Similar content being viewed by others

Notes

  1. Good literature reviews are provided by Shimazaki and Rahman (1996), Phun and Yai (2016), Behal et al. (2020), and IDB (2020).

  2. There are a number of studies examining the demand for individual car use and public transportation, including rail, bus, tram, taxi and even walk (e.g., Hensher and Rose 2007; Habibi 2012; Deb and Filippini 2013; Brands et al. 2014; Chakrabarti 2017).

  3. According to the latest national census data (INSTAT 2018).

  4. According to the UN Habitat estimate (UN ESA 2018).

  5. Madagascar’s GDP per capita is about 1% of the Japanese GDP per capita. The land prices in Antananarivo are about 1.1% of those in Tokyo.

  6. According to World Development Indicators.

  7. Antananarivo Renivohitra (comprised of six districts), Antananarivo Avaradrano, Antananarivo Atsimondrano.

  8. Arivanimamo and Ambohidratrimo.

  9. The original data range from 1 to 67, seemingly including some outliers. Thus, the conventional letter values are used to identify outliers. The upper outer fence is 15. Ten observations are considered to be severe outliers outside the outer fence, which make up about two per million of a normal population. Though the regression results remain broadly the same regardless of whether the outliers are included or excluded.

  10. In the quantile regression models, some of the dummy variables are omitted due to multicollinearity.

  11. The average number of transfers made is the same between the two groups. It is 1.2 times for travelers within CUA and 1.3 times for those who travel from and to the outside of the CUA.

References

  • Angel S, Alejandro B, Jason P, Patrick L-H, Nicolas S, Civro D, Qian Lei R, Thom K (2016) Atlas of urban expansion—2016 Edition, Volume 1: areas and densities. Lincoln Institute of Land Policy, New York; UN-Habitat, Nairobi; New York University, Cambridge

  • Arroyo-Arroyo F, van Ryneveld P, Finn B, Greenwood C, Coetzee J (2021) Innovation in fare collection systems for public transport in African Cities. Africa Transport Policy Program, Washington, D.C.

    Google Scholar 

  • Battese G (1997) A note on the estimation of Cobb-Douglas production functions when some explanatory variables have zero values. J Agric Econ 48(2):250–252

    Article  Google Scholar 

  • Behal D, Kumar S, Tiwari G (2020) Determination and analysis of informal public transport stops. IATSS Res 44:36–54

    Article  Google Scholar 

  • Brands T, de Romph E, Veitch T, Cook J (2014) Modelling public transport route choice, with multiple access and egress modes. Transport Res Proc 1:12–23

    Article  Google Scholar 

  • CDIA (2011) Informal public transportation networks in three Indonesian Cities. Cities Development Initiative for Asia (CDIA), Manila

  • Chakrabarti S (2017) How can public transit get people out of their cars? An analysis of transit mode choice for commute trips in Los Angeles. Transp Policy 54:80–89

    Article  Google Scholar 

  • Chatterjee K, Chng S, Clark B, Davis A, De Vos J, Ettema D, Handy S, Martin A, Reardon L (2020) Commuting and wellbeing: a critical overview of the literature with implications for policy and future research. Transp Rev 40(1):5–34

    Article  Google Scholar 

  • Chica-Olmo J, Gachs-Sanchez H, Lizarrage C (2018) Route effects on the perception of public transport service quality. Transp Policy 67:40–48

    Article  Google Scholar 

  • Chow GC (1960) Tests of equality between sets of coefficients in two linear regressions. Econometrica 28(3):591–605

    Article  Google Scholar 

  • Chowdhury S, Ceder AA (2016) Users’ willingness to ride an integrated public-transport service: a literature review. Transp Policy 48:183–195

    Article  Google Scholar 

  • Deb K, Filippini M (2013) Public bus transport demand elasticities in India. J Transp Econ Policy 47(3):419–436

    Google Scholar 

  • Gadepalli R, Tiwari G, Bolia N (2020) Role of user’s socio-economic and travel characteristics in mode choice between city bus and informal transit services: lessons from household surveys in Visakhapatnam, India. J Transp Geogr 88:102307

    Article  Google Scholar 

  • Ge L, Sarhani M, Voß S, Xie L (2021) Review of transit data sources: potentials, challenges and complementarity. Sustainability 13:11450

    Article  Google Scholar 

  • Golub A, Balassiano R, Araujo A, Ferreira E (2009) Regulation of the informal transport sector in Rio de Janeiro, Brazil: welfare impacts and policy analysis. Transportation 36:601–616

    Article  Google Scholar 

  • Goodwin P, Dargay J, Hanly M (2004) Elasticities of road traffic and fuel consumption with respect to price and income: a review. Transp Rev 24(3):275–292

    Article  Google Scholar 

  • Goulias K, Pendyala R, Kitamura R (1990) Practical method for the estimation of trip generation and trip chaining. Transp Res Rec 1285:47–56

    Google Scholar 

  • Habib KMN (2012) Modeling commuting mode choice jointly with work start time and work duration. Transport Res Part A Policy Pract 46:33–47

    Article  Google Scholar 

  • Hensher D, Rose J (2007) Development of commuter and non-commuter mode choice models for the assessment of new public transport infrastructure projects: a case study. Transport Res Part A Policy Pract 41:428–443

    Article  Google Scholar 

  • Horowitz J (1993) Semiparametric estimation of a work-trip mode choice model. J Econometr 58(1–2):49–70

    Article  Google Scholar 

  • IDB (2020) Informal and semiformal services in Latin America: an overview of public transportation reforms. Inter-American Development Bank, Washington, DC

    Google Scholar 

  • Iimi A (2019a) Location, location, location revisited: evidence from Antananarivo, Madagascar. World Bank Policy Research Working Paper No. 8958. World Bank, Washington, DC

  • Iimi A (2019b) Job accessibility and urban transport connectivity: evidence from Antananarivo, Madagascar. World Bank Policy Research Working Paper No. 8959. World Bank, Washington, DC

  • INSTAT (2018) Troisieme Recensement General de la Population et de l’Habitation (RGPH-3). INSTAT, Madagascar

  • Kholodov Y, Jenelius E, Cats O, van Oort N, Mouter N, Cebecauer M, Vermeulen A (2021) Public transport fare elasticities from smartcard data: evidence from a natural experiment. Transp Policy 105:35–43

    Article  Google Scholar 

  • Kumar A, Zimmerman S, Arroyo-Arroyo F (2021) Myths and realities of ‘informal’ public transport in developing countries: approaches for improving the sector. SSATP Discussion Paper. Africa Transport Policy Program, Washington, D.C

  • Lall S, Henderson V, Venables A (2017) Africa’s cities: opening doors to the world. World Bank, Washington, DC

    Book  Google Scholar 

  • Litman T (2013) Transport elasticities: impacts on travel bahaviour: understanding transport demand to support sustainable transport behaviour. Sustainable Urban Transport Technical Document #11, GIZ

  • Litman T (2021) Understanding transport demands and elasticities: how prices and other factors affect travel behavior. Victoria Transport Policy Institute

  • Lozano-Gracia N, Cheryl Y (2014) Housing consumption and urbanization. World Bank Policy Research Working Paper No. 7112. World Bank, Washington, DC

  • Nordman C, Rakotomanana F, Roubaud F (2016) Informal versus formal: a panel data analysis of earning gaps in Madagascar. Discussion Paper No. 9970, Institute for the Study of Labor (IZA)

  • Parsons G, Mary K (1995) A demand theory for number of trips in a random utility model of recreation. J Environ Econ Manag 29:357–367

    Article  Google Scholar 

  • Paulley N, Balcombe R, Mackett R, Titheridge H, Preston J, Wardman M, Shires J, White P (2006) The demand for public transport: the effects of fares, quality of services, income and car ownership. Transp Policy 13:295–306

    Article  Google Scholar 

  • Permana AS, Sinniah GK, Pamardhi-Utomo R, Putri RA (2018) Dual formal and informal transport modes towards quasi-seamless transit in a developing city. Int J Built Environ Sustain 5(3):224–240

    Article  Google Scholar 

  • Phun VK, Yai T (2016) State of the art of paratransit literatures in Asian developing countries. Asian Transp Stud 4(1):57–77

    Google Scholar 

  • Phun VK, Masui R, Yai T (2018) Operational characteristics of paratransit services with ride-hailing apps in Asian developing cities: the Phnom Penh case. J Transport Technol 8:291–311

    Article  Google Scholar 

  • Romano D, Scarpa R, Spalatro F, Vigano L (2000) Modelling determinants of participation, number of trips and site choice for outdoor recreation in protected areas. J Agric Econ 51(2):224–238

    Article  Google Scholar 

  • Salomon I, Singer ME (2014) Informal travel: a new conceptualization of travel patterns? Transp Rev 34(5):562–582

    Article  Google Scholar 

  • Shimazaki T, Rahman M (1996) Physical characteristics of paratransit in developing countries of Asia. J Adv Transp 30(2):5–24

    Article  Google Scholar 

  • Simsekoglu O, Nordfjarn T, Rundmo T (2015) The role of attitudes, transport priorities, and car use habit for travel mode use and intentions to use public transportation in an Urban Norwegian Public. Transp Policy 42:113–120

    Article  Google Scholar 

  • Tichagwa CG (2016) Unlicensed taxis in Zimbabwe’s urban areas: the case for legalising an informal urban transportation system. Dev South Afr 33(1):81–98

    Article  Google Scholar 

  • Tiglao NC, de Veyra J, Tolentino NJY, Tacderas MA (2020) The perception of service quality among paratransit users in Metro Manila using structural equation modelling (SEM) approach. Research in Transportation Economics 83: paper 100955

  • Torgler B, Schneider F (2007) Shadow economy, tax morale, governance and institutional quality: a panel analysis. Discussion Paper No. 2563, Institute for the Study of Labor (IZA)

  • TRL (2004) The demand for public transport: a practical guide. Transport Research Laboratory (TRL) Report TRL593

  • UN ESA (2018) World urbanization prospects: the 2018 Revision. UN Department of Economic and Social Affairs

  • UN ESA (2020) World City Report 2020: the value of sustainable urbanization. UN Department of Economic and Social Affairs

  • Wade E (2015) Antananarivo, Madagascar (1600s-). https://www.blackpast.org/global-african-history/antananarivo-madagascar-1600s/

  • Wardman M, Toner J, Fearnley N, Flugel S, Killi W (2018) Review and meta-analysis of inter-modal cross-elasticity evidence. Transport Res Part A Policy Pract 118:662–681

    Article  Google Scholar 

  • World Bank (2016) Measuring urban living standards in Antananarivo 2016. World Bank, Washington, DC

    Google Scholar 

  • World Bank (2019) Spatial analysis of Antananarivo: transport access, poverty and jobs. World Bank Group, Washington, DC

  • ZIPJET (2017) The 2017 global least & most stressful cities ranking. ZIPJET, London

    Google Scholar 

Download references

Funding

No funding was received for conducting this study.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Atsushi Iimi.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Appendix

Appendix

See Tables 8, 9 and 10.

Table 8 Demand functions differentiated by distance travelled
Table 9 Demand functions differentiated by trip purposes
Table 10 Demand functions differentiated by gender

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Iimi, A. Estimating the demand for informal public transport: evidence from Antananarivo, Madagascar. Public Transp 15, 129–168 (2023). https://doi.org/10.1007/s12469-022-00300-9

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s12469-022-00300-9

Keywords

JEL Classification

Navigation